From July 1, 2023: 115,000 households exempt from paying the municipal tax

In a statement, he explained that the government had decided to abolish the municipal tax on the family home, considering it unfair that a family must pay this housing tax in order to be able to reside in an urban area.

The government undertook in 2019 to correct this anomaly, he said, recalling that in the 2022-23 budget speech, it was announced that as of July 1, 2022, the municipal tax on the family home would be abolished.

“To implement this budget measure, my department has had consultations with the Department of Finance, the Attorney General’s Office, the Valuation Department as well as city councils. We discussed the best possible way to achieve this measure,” he says.

After several consultations with all these institutions, it was thus decided to exempt all households with a single house. In addition, for those who own more than one house, in any municipal area, they will also be exempt, but only for the main residence. Finally, in the case of mixed-use buildings, i.e. buildings either partly residential and industrial, or partly residential and commercial, the exemption will only be granted for the residential part of the building.

The Local Government (Exemption of Municipal Tax on Family Home) Regulations 2023 and the Local Government (Amendment of Schedule) Regulations 2023 will be enacted this month with entry into force from 1 July.